Comparing The PMI Group (OTCMKTS:PPMIQ) & NMI (NASDAQ:NMIH)

NMI (NASDAQ:NMIH) and The PMI Group (OTCMKTS:PPMIQ) are both financial companies operating in the mortgage insurance sector. This article aims to compare the two firms by examining multiple factors: analyst recommendations, earnings, valuation, profitability, dividends, risk, and institutional ownership.

Analyst Recommendations

Recent ratings provided by analysts reveal an intriguing contrast between the two companies. NMI has garnered attention with a consensus rating score of 2.71. Specifically, there are no sell ratings, two hold ratings, and five buy ratings for NMI. In comparison, The PMI Group currently has no ratings at all, resulting in a rating score of 0.00. Furthermore, NMI's target price is set at $43.29, suggesting a potential upside of 10.17% for investors. These metrics collectively indicate that analysts generally find NMI to be more favorable than The PMI Group.

Earnings & Valuation

When analyzing earnings and valuation, NMI outshines The PMI Group significantly. The gross revenue for NMI stands at $635.85 million, accompanied by a price-to-sales ratio of 4.89. Their net income is reported at $322.11 million, resulting in earnings per share (EPS) of $4.37 and a price-to-earnings ratio (P/E) of 8.99. Unfortunately, information on The PMI Group’s financial metrics is not available, indicating its relative underperformance in this aspect.

Profitability

Several key profitability indicators further emphasize NMI's strengths. NMI boasts a robust net margin of 56.20%, a return on equity of 17.82%, and a return on assets of 11.73%. These figures reflect the company’s efficiency in generating profits relative to its revenue and resources. In contrast, The PMI Group does not provide comparable metrics.

Insider & Institutional Ownership

Institutional investors hold a significant 94.1% of NMI shares, while company insiders own 2.7%. This high level of institutional ownership suggests a strong belief in NMI's potential for long-term growth, as large investors often do extensive analysis before committing their capital.

Summary

In summary, NMI consistently surpasses The PMI Group across all nine criteria analyzed, concluding that NMI currently represents a more compelling investment opportunity.

About NMI

NMI Holdings, Inc. specializes in private mortgage guaranty insurance services throughout the United States. Their offerings include primary and pool insurance, along with outsourced loan review services aimed at a range of clients including national and regional banks, credit unions, and other lenders. NMI was established in 2011 and is based in Emeryville, California.

About The PMI Group

The PMI Group, Inc. primarily provides residential mortgage insurance through its subsidiary, PMI Mortgage Insurance Co. In the past, they operated in various segments, but faced financial challenges that led to a Chapter 11 bankruptcy filing in November 2011. The PMI Group's activities include offering various products designed to meet capital and credit risk needs in the mortgage space.

NMI, PMI, Finance